To Do With Investment Properties.?

Ok so....

We buy an investment property with a homeloan for the full amount plus a little more...($190,000)

Would it be wise to put it on an interest only loan where the interest only period last for 5 years since we plan to sell it in a year? So we only pay a years worth of interest and then just pay off the the loan with the money left over.

Would it work?


Thanks.

Hmm What if we keep it for the two years?

In this market. I would say it is not a good investment. You have closing costs that would eat any minimal increase in house value, You would most likel ylose money over most normal two year period. Generally house values rise @4% per year though I wouldnt depend on that over the next two years. If you were looking at a five year period. Then it might be almost worth it. Real estate fees will be 10-12 thousand dollars

Only if the property is going to be able to sell for the amount of the loan plus any commissions and cost at the time of closing during the sell of the property . Plus your gong to have to pay capital tax gains on it for not keeping it for at least two years.

There is a really good book you can download for free called 'What I Didn't Learn At School But Wish I Had'

Chapter 14 looks at Property Strategies......
- how to buy property virtually no money down
- 21 point criteria checklist
- Arranging finance

Just click FREE E-book by Jamie McIntyre at:
http://www.thewealthage.com

Hope its helps!

not in 2007 I would say the house will be worth the same at best in three years terrible time to buy a house